EUR/USD Jan. 11 – Floating in Range

EUR/USD is settling in a slightly higher range after the initial fall on the Portuguese fears. Will it pick a new direction? Here’s a quick update on technicals, fundamentals and community trends. EUR/USD Technicals

• Asian session:  Narrow range between 1.2920 and 1.2970.



• Further levels in both directions: Below   1.2920,  1.28, 1.2722, 1.2587.
• Above  1.2970, 1.3080,  1.3180, 1.3267, 1.3334, 1.3440, 1.3576,  1.37, 1.3786,  1.3950 and 1.4030.
• 1.2970 was the lowest level in 4 months, and and now serves as resistance.
• Significant support is only at 1.2722.

Euro/Dollar in range- click to enlarge graph

EUR/USD Fundamentals –

• 13:30 US FOMC memberCharles Plosser talks.
• 15:00 US IBD/TIPP Economic Optimism. Exp. 47.1 points.
• 19:00 US FOMC member Narayana Kocherlakota talks.

* All times are GMT. For more events later in the week, see the EUR/USD forecast.

EUR/USD Sentiment

• A bailout for Portugal is high on the agenda – the Euro-zone’s biggest countries push the small nation to take a bailout. 7% for ten note yields is marked as the no return points.
• US Non-Farm Payrolls disappointed on Friday, but it didn’t cheer the Euro.
• Inflation is becoming problematic for Europe. This comes as employment is still high. Double trouble for Europe. Trichet isn’t likely to raise the rate later in the week.
• Japan and China talk of buying bonds of Euro zone countries – this is probably quite limited.
• Trichet won’t be the hero to make the difference regarding the debt crisis.

Currensee Community: 63% are long , 37% are short, more than yesterday. These are 1333 open positions in real accounts trading this pair at the moment.